Geopolitical Risk and Supply Outages Underpin Oil Prices

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Geopolitical Risk and Supply Outages Underpin Oil Prices
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Next week, crude oil prices are likely to trade within a defined range, with geopolitical risks acting as a support level and demand-related concerns forming a ceiling

Crude oil prices moved higher this week, supported by escalating geopolitical tensions. The Russia-Ukraine conflict has intensified, with Ukraine using long-range missiles supplied by the U.S. and Britain to strike targets within Russian territory. In response, Russia launched an intercontinental ballistic missile for the first time since the war began, raising fears of further escalation.

Meeting Adds to Market Uncertainty The upcoming cuts in place, underscores the potential for a supply overhang in the medium term. U.S. Dollar Strength Pressures Crude Prices The strength of the U.S. dollar has added to the challenges faced by crude oil. A stronger dollar makes oil more expensive for holders of other currencies, discouraging demand. With the dollar hovering near a one-year high, its impact on oil prices has been significant, further limiting upward momentum in the market.

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